A report examining the implications of the announcement accelerating the opening up of China’s financial sector
KPMG China’s latest analysis looks at the implications for investors after the State Council announced on 20 July 2019 that it would accelerate the process of relaxing restrictions on foreign ownership in China’s financial sector.
Proposals to phase out foreign ownership limits in the financial sector were initially announced in November 2017. KPMG’s article, Accelerated opening up of China’s financial sector, notes this is the second time since then that the timeline has been brought forward.
The State Council confirmed it would allow full foreign ownership in the life insurance, securities, fund management and futures sectors in 2020 instead of 2021, and the lifting of the 25% foreign ownership cap on insurance AMCs. The 30-year track record requirement on foreign sponsors of insurance companies in China will also be abolished.
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